Arizona Mortgage Broker Bond

An Arizona Mortgage Broker Bond is a type of surety bond required by the Arizona Department of Financial Institutions (DFI) for all mortgage brokers operating in the state. The bond serves as a financial guarantee to protect consumers from fraud and misconduct by the broker. The bond is one of the requirements to obtain a mortgage broker license in Arizona. While the surety bond is required by the DFI, the license application is completed through the Nationwide Mortgage Licensing System (NMLS). 

The Arizona Mortgage Broker Bond amount is:

• Mortgage brokers who work only with institutional investors must obtain a $10,000 bond.
• Mortgage brokers who work with any non-institutional investors must obtain a $15,000 bond.

The cost of the surety bond is usually subject to a minimum premium and fees of $150 to $200.00.

How to Get an Arizona Mortgage Broker Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Arizona Mortgage Broker Bond will be shipped to the bond applicant. After receipt of the bond, Upload the Surety Bond into the “Document Uploads” section of the Form MU1 in the NMLS.  ^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Who is Required to Hold a Mortgage Broker License in Arizona?

In Arizona, anyone who engages in the following activities for compensation or in the expectation of compensation needs a mortgage broker license:

• Takes a residential mortgage loan application.
• Offers or negotiates terms of a residential mortgage loan.
• Originates, negotiates, or arranges a residential mortgage loan.
• For compensation or gain, solicits, advertises for, holds oneself out as willing to, or attempts to engage in any of the activities listed above.

There are some exemptions to this requirement, including:

• Institutional investors: This includes banks, credit unions, government agencies, and other financial institutions.
• Mortgage bankers with an Arizona license: These are companies that fund and service mortgage loans.
• Responsible individuals and branch managers for mortgage lenders: These individuals are responsible for the activities of their employees who originate mortgage loans.
• Employees of a licensed mortgage broker or mortgage lender: These employees do not need their own license if they are working under the supervision of a licensed individual.

Here are some resources where you can find more information about Arizona mortgage broker licensing requirements:

• Arizona Department of Insurance – Mortgage Industry: https://difi.az.gov/industry/mortgage-industry
• Nationwide Mortgage Licensing System – Arizona – State Licensing Requirements: https://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=AZ
• AZ-Broker-New-Application-Checklist.pdf: https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/AZ-Broker-New-Application-Checklist.pdf

Click Here to Visit our State by State Guide to Mortgage Industry Bonds